Julie Works at a Local Hat Factory for $12 an Hour

question 152

Multiple Choice

Julie works at a local hat factory for $12 an hour and typically works 40 hours a week.The company threatens layoffs,so Julie and the others agree to a pay cut.Julie now earns $10 an hour and works every hour over 40 that her boss will let her.Julie's response to this pay cut:

• A)was to work more,demonstrating a dominant income effect.
• B)was to work more,demonstrating a dominant price effect.
• C)was to work less,demonstrating a dominant income effect.
• D)was to work less,demonstrating a dominant price effect.

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Definitions:

Appeal to Popularity

The appeal to popularity is a logical fallacy that suggests something is true, good, or desirable simply because it is popular or widely accepted by many people.

Complexity

The state or quality of being intricate or complicated.

Overconfidence

The psychological condition of having excessive confidence in one's own abilities or outcomes, often leading to mistakes.

Analogies

Comparisons made between different things to highlight their similarities, often used in reasoning and argumentation to illustrate a point or explain a concept.